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Variances

This document outlines variances for materials, labour, and fixed overhead (F.O.H.) costs. It defines total variance as the difference between actual and standard costs multiplied by actual quantities or rates. Variances are then broken down into price, usage, rate, efficiency, spending, and idle capacity components to analyze where costs differed from standards.

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Nadir Muhammad
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48 views2 pages

Variances

This document outlines variances for materials, labour, and fixed overhead (F.O.H.) costs. It defines total variance as the difference between actual and standard costs multiplied by actual quantities or rates. Variances are then broken down into price, usage, rate, efficiency, spending, and idle capacity components to analyze where costs differed from standards.

Uploaded by

Nadir Muhammad
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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VARIANCES

MATERIALS LABOURS F.O.H


MATERIALS

TOTAL MATERIALS VARIANCE X ACTUAL PRICE

ACTUAL UNITS STANDARD UNITS X

STANDARD PRICE

MATERIALS PRICE VARIANCES X X ACTUAL PRICE STANDARD PRICE

ACTUAL UNITS ACTUAL UNITS

MATERIALS USAGE VARIANCES X X STANDARD PRICE STANDARD PRICE

ACTUAL UNITS STANDARD UNITS

LABOURS
LABOR TOTAL VARIANCE X ACTUAL RATE RATE

ACTUAL HOURS WORK

STANDARD HOURS WORK X

STANDARD

LABOUR RATE VARIANCES X X ACTUAL RATE STANDARD RATE

ACTUAL HOUR WORKED ACTUAL HOUR WORKED

LABOUR EFFICIENCY VARIANCE X X STANDARD RATE STANDARD RATE

ACTUAL HOUR WORK STANDARD HOUR WORK

F.O.H

TOTAL VARIANCE X ACTUAL RATE

ACTUAL OUTPUT STANDARD OUTPUT X

STANDARD RATE

SPENDING VARIANCE

ACTUAL F.O.H BUDGETED F.O.H BASE ON ACTUAL OUT PUT FIXED VARIABLE IDLE CAPACITY VARIANCE

BUDGETED TOTAL F.O.H BASE ON ACTUAL OUTPUT


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